How Social Security Benefits Are Calculated
The Social Security Administration takes your highest 35 years of inflation-adjusted earnings, computes your Average Indexed Monthly Earnings (AIME), and applies a progressive formula with bend points. This calculator uses 2025 bend points ($1,174 and $7,078) and adjusts for early or delayed claiming relative to full retirement age (67 for those born after 1960).
Related Calculators
Frequently Asked Questions
When should I claim Social Security?
Claiming at 62 gives you the earliest but smallest benefit (reduced ~30%). Waiting until 70 gives you the largest benefit (increased ~24% over FRA). Your break-even age is typically around 80.
How is the benefit calculated?
Social Security uses your highest 35 years of earnings, adjusts for inflation, takes the monthly average (AIME), and applies a progressive formula (PIA) with bend points.
Is this estimate accurate?
This is a simplified estimate. For an official projection, use ssa.gov/myaccount.